Warner Bros. Discovery has rejected Paramount Global's most recent acquisition proposal valued at $31 per share but extended a final opportunity for Skydance to present its best offer by February 23. The decision reflects the company's continued preference for its existing merger agreement with Netflix at $27.75 per share, which includes a matching rights clause allowing Netflix to counter any superior proposal.
The board's rejection of Paramount's elevated bid underscores the strategic and regulatory advantages it sees in the Netflix transaction. According to the company's statement, the Netflix deal provides clearer regulatory visibility and better shareholder value compared to the hostile bid from Paramount, despite the latter's premium pricing. The matching rights provision gives Netflix the ability to maintain its competitive position should Skydance submit a compelling final offer.
The February 23 deadline represents a critical juncture in the protracted takeover negotiations. Paramount Skydance's willingness to increase its offer from previous levels demonstrates continued interest in the transaction, though Warner Bros.' commitment to the Netflix agreement suggests a high bar for any alternative proposal. The outcome of the final bidding round will likely determine the direction of one of media's most significant pending transactions.